Question: Is penny stock and market stock the same?
penny stocks are very low priced stocks. The vast majority of them are worthless companies, many are shell corporations. Few are legitimate businesses. If you want to invest in stocks, invest in legitimate stocks that are listed on an exchange. Or go to the casino because that is what penny stocks are.
Answer:
What is a 'market stock'?
hmmmm....penny stocks are usually defined here as under $5/share...my personal definition is under $1/share.
So Penny stocks are a subset of all stocks on the market.
Penny stocks (my definition) are on the heavy side of risk for those who lack skills and believe in all the hype that can surround them.....Sub-penny stocks (less than $0.01/share) are definitely stocks to avoid as 90% of those are either stocks in their last death throes or outright scams (the latter being more prevalent)
the Penny stocks in the $1-$5 range can offer good investing opportunities if you are skilled at investigation. Often in the mining industry a property is developed to a certain point then sold to a larger mine for final development...it is cheaper for mining companies to expand their reserves this way as the risk to their bottom line is less at that point....such stocks can give you a really healthy return in a short period of time if you are smart enough to find them. Similarly with OIL and Gas Junior companies...larger oil & gas companies swallow them up in buy-outs or two juniors combine to make a bigger company....such things are great when you find them and are not really that rare.
So IF YOU ARE SKILLED at finding and investigating stocks I would not ignore this price region at all. The same applies to stocks in the $.25 - $1 range There the finds are not as common but they exist.
It is not a place particularly for newbies as it requires skill to find them and the Pump & DUMP frequency in this range is high....but once you learn to identify such stocks it is easy to avoid them.
SO....unlike many people here I actively trade in the $0.25 -$5 price range and have few bad experiences....but then I do possess the necessary skills to identify that companies like NSRS are scams
http://stockcharts.com/h-sc/ui?s=NSRS&p=…
you will if you look at my answers find that along with JoeyV , I screamed this to be a scam and showed why.....although...if you were not too greedy you could have ridden this scam as well for a tidy profit on a short term swing of two weeks...that is if you had the skills to bail out in time. Charting works :)
I don't think there is anything called a "market stock". I'm not sure what you are referring to, if it is "stock market" you are referring to then the answer is: NO, they are not the same.
A "stock market" is a place or market where "stocks" of companies are bought and sold.
"Stocks" are a type of security/financial instrument that signifies ownership in a company. If you own some stock of a company, you own part of the company. You can sell your stocks at a certain price in the "stock market". So each stock has a price.
"Penny stocks" are stocks of small public companies that sell for less than $1.00 in the U.S.
Therefore, "penny stock" is a type of stock that is bought and sold in a market called the "stock market".
Penny stocks are in my opinion a worthwhile market for low capital firm investments, firms who wish to raise capital for research and development, medical devices, medical products-services, medicines, new medical cures, energy products etc or just to take advantage of expansion opportunities.
There are many firms today whose stock would be considered penny values or less than even $0.50 cents in value whom have the potential to become monster firms once they realize their potential values.
These types of firms are often on the cutting edge of a new technology or new energy sources, there are firms right now as I write that are poised for incredible gains in energy sources such as Lithium which is used in batteries found in our cellphones and laptop computers, it is obvious that these firms are producing a low volume product that is in very high demand worldwide, conseqently there is only one way for their 30 cents penny stocks to go and that is up and if you have a sufficient holdings in those penny stocks, you will of course realize a very large return on your original investment.
There are also a large number of Chinese firms in the same situation waiting to grow, google "penny stock" for a list of publications catering to the penny stock market, it is worthwhile and even your local stock broker can help you get involved!
Yes. Penny stocks tend to be cheap stocks with little or no potential. They are cheap for a reason. Many novice investors like to invest (throw away their money would be a better term) in penny stocks because they can buy a lot of shares for a low amount of money. But the fact of the matter is that one would do better to buy one share of Apple rather than 5000 shares of a 10 cent stock whose destiny is to eventually disappear entirely. Apple dropping catastrophically in full crash mode from $476 per share to $47 per share would be exactly the same as a 10 cent stock dropping to a penny.